Correlation Between GuoChuang Software and Shandong Longquan
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By analyzing existing cross correlation between GuoChuang Software Co and Shandong Longquan Pipeline, you can compare the effects of market volatilities on GuoChuang Software and Shandong Longquan and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GuoChuang Software with a short position of Shandong Longquan. Check out your portfolio center. Please also check ongoing floating volatility patterns of GuoChuang Software and Shandong Longquan.
Diversification Opportunities for GuoChuang Software and Shandong Longquan
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GuoChuang and Shandong is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding GuoChuang Software Co and Shandong Longquan Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longquan and GuoChuang Software is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GuoChuang Software Co are associated (or correlated) with Shandong Longquan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longquan has no effect on the direction of GuoChuang Software i.e., GuoChuang Software and Shandong Longquan go up and down completely randomly.
Pair Corralation between GuoChuang Software and Shandong Longquan
Assuming the 90 days trading horizon GuoChuang Software is expected to generate 3.21 times less return on investment than Shandong Longquan. In addition to that, GuoChuang Software is 2.19 times more volatile than Shandong Longquan Pipeline. It trades about 0.02 of its total potential returns per unit of risk. Shandong Longquan Pipeline is currently generating about 0.17 per unit of volatility. If you would invest 456.00 in Shandong Longquan Pipeline on October 29, 2024 and sell it today you would earn a total of 24.00 from holding Shandong Longquan Pipeline or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GuoChuang Software Co vs. Shandong Longquan Pipeline
Performance |
| Timeline |
| GuoChuang Software |
| Shandong Longquan |
GuoChuang Software and Shandong Longquan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GuoChuang Software and Shandong Longquan
The main advantage of trading using opposite GuoChuang Software and Shandong Longquan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuoChuang Software position performs unexpectedly, Shandong Longquan can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shandong Longquan will offset losses from the drop in Shandong Longquan's long position.| GuoChuang Software vs. UE Furniture Co | GuoChuang Software vs. Markor International Home | GuoChuang Software vs. iSoftStone Information Technology | GuoChuang Software vs. Air China Ltd |
| Shandong Longquan vs. Anhui Tongguan Copper | Shandong Longquan vs. Hainan Mining Co | Shandong Longquan vs. Yili Chuanning Biotechnology | Shandong Longquan vs. Changchun BCHT Biotechnology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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